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Abu Dhabi firm sells back 5 percent Ferrari stake

Abu Dhabi firm sells back 5 percent Ferrari stake

Abu Dhabi state investment firm Mubadala Development Co. said Sunday it is selling back its 5 percent stake in Ferrari but hopes to continue working with the high-powered Italian automaker.
The investment fund is a sponsor of Ferrari's Formula 1 team and has helped boost the high-end racing brand's profile in the wealthy Emirati capital. It confirmed the plans following a local media report as the season-ending Abu Dhabi Grand Prix was getting under way in the Emirati capital.
Mubadala said Ferrari's parent Fiat Group SpA exercised an option that gave it the right to buy back the stake Mubadala acquired in 2005.
"The call option, which was set to expire at the end of July, had been extended twice before by mutual consent between Fiat and Mubadala. We are currently in discussions to complete the transaction," Mubadala said in a statement.
Mubadala didn't provide financial details. But Fiat's third-quarter results released last month show the deal cost it (EURO)122 million ($167 million).
Mubadala, which also holds stakes in General Electric Co. and chip maker Advanced Micro Devices Inc., has leveraged its Ferrari ties to put Abu Dhabi on the muscle car map.
Last year saw the inauguration of the Abu Dhabi Grand Prix, which was held for the second time Sunday. The city recently unveiled the world's first Ferrari theme park next to the Yas Marina Circuit F1 track. It boasts a 149 mile per hour roller coaster and the largest collection of current and classic Ferrari race cars outside the company's headquarters in Italy.
Mubadala is eager to maintain those ties.
"We have a strong relationship with Ferrari and are continuously looking for ways to work together," the company said Sunday.
The feeling appears mutual.
Fiat CEO Sergio Marchionne said in September he would like to buy back the 5 percent Ferrari stake to restore its historical 90-percent share in the carmaker. But he added that Mubadala had been "incredibly good shareholders" and that he wanted to retain its involvement in the brand.
Marchionne is aiming to forge a global car manufacturer with U.S. partner Chrysler LCC that is able to produce 6 million cars a year by 2014.
Mubadala in September reported a $1.2 billion first-half loss as the value of its investments plunged.


Updated : 2021-10-28 22:48 GMT+08:00